During the quarter, MRINetwork, the company’s executive search subsidiary, posted third quarter revenue of $13.0 million versus $13.5 million in the prior year due primarily to a decline in royalty revenue. Earlier this year, MRI appointed Jill Albrinck as its new president. She previously served as chief operating officer of DeVry University.

Enterprise Talent revenue was $127.5 million versus $146.9 million in the prior-year period. Revenue in the company’s North America Staffing vertical declined 7.8 percent, or $9.4 million, primarily due to the completion of discrete client projects and reduced spending at the company’s largest client. UK Staffing revenue declined 38.7 percent, to $15.8 million from $25.8 million, due to the negative impact of foreign currency exchange rates (approximately $2.9 million), the disposition of Anders (approximately $3.5 million) on September 16, and reductions across engineering and construction sectors, in part associated with the uncertainty following the Brexit referendum.

The Philadelphia-based recruiting company reported a net loss of $17.8 million, or $(0.96) per diluted share, versus a net loss of $20.2 million, or $(1.03) per diluted share, in third quarter 2015.

“Business performance during the third quarter includes actions taken to improve our expense structure and cash conversion, as well as strategic focus with the sale of U.K.-based AndersElite Limited,” said president and interim chief executive officer Michael S. Castleman. “Going forward, we share as a company a clear operating imperative to build on common pillars of our business, such as talent acquisition and management, to deliver improved growth and profitability. This imperative is supported by the tremendous commitment and collaborative spirit of all CDI employees.”

CDI repurchased 260,960 shares for $1.6 million during the third quarter and an aggregate of 1,190,356 shares for $7.3 million from inception of the program through September 30.

“The board appreciates Scott’s leadership during a time marked by challenges within our market and client footprint,” he added. He said he was “grateful” to Mr. Castleman for agreeing to accept the additional responsibilities of president and interim CEO.

Q4 Outlook

CDI Corp. estimates revenue for the fourth quarter in the range of $185 million to $195 million, with project completions, project delays and volume declines among large clients within Enterprise Talent, and fewer billing days in the fourth quarter, negatively impacting its estimated fourth quarter revenue.

CDI shares have decreased 19 percent since the beginning of the year. The stock has dropped 35 percent in the last 12 months.